You multiply the interest rate of 3. 1 by one year 12 and 4.2 by the interest rate of 36 years. So that's it.
For the convenience of understanding, we use elementary school mathematics calculation. You can explain it to any relative who thinks that he has taken advantage of the bank in this way.
For the convenience of calculation, suppose you borrow 1200 yuan, and the annual interest rate is 5%, then you have to repay it in 12 installments 1260 yuan, and each installment is 105 yuan.
At this time, let's change our thinking. We don't have to think of it as a one-time loan 1200, but as 12 times. Every loan 100 yuan is the same thing.
One is 100 after one month, the other is 100 after two months and the other is 100 after three months. ...........
The last payment is 100, and it will be repaid one year later 105 yuan, with an annual interest rate of 5%, which is very good.
The first payment is 100 yuan, and the repayment is 105 yuan after one month, with a monthly interest rate of 5%, so the annual interest rate is naturally multiplied by 12, which is equal to 60%.
There is a 100 in the middle, which is 105 yuan after half a year, with a half-year interest of 5%. Then the annual interest rate should be multiplied by 2, which is equal to 10%.
Every 100 yuan is calculated in this way, and we get different interest rates of 12. Add them up and divide them by 12, and we get the real interest rate.
namely
(interest rate 12/ 12 interest rate 1 1 2/10 .......... interest rate12/1)//kloc-0.
= interest rate (12/12112/10 ..........12/1)/kloc-0.
= interest rate (1121111...1)
Take out your calculator and do the math.
Three years and five years are the same, just press the calculator a few times.
However, even with such an easy-to-understand calculation, too many people still don't understand that they still have to borrow money from banks at an annualized interest rate of 20% and then lend it at an interest rate below 20%.
Calculator formula of loan annualized interest rate
The calculation process of annual interest rate is as follows: annual interest rate = monthly interest rate × 12 months = daily interest rate ×360 days (360 days per year). If the daily interest rate is 0.05%, the annualized interest rate is 0.05% × 360 days = 18%, and the loan is 10000 yuan, the annual interest is 18%× 10000 yuan = 1800 yuan.
What does the annualized interest rate of bank loans mean and how to calculate it?
1. You can log on to the official website of Bank of China (), click Financial Data-Deposit/Loan Interest Rate on the right side of the home page, and select the loan interest rate table by currency to inquire about the loan interest rate. The interest rates of various loan products will be different. For details, please consult the local branch of Bank of China.
2. In addition, you can check the loan interest through "China Bank Micro-Banking" WeChat official account or Bank of China mobile banking.
Official account number of "China Bank Weizhong Bank" WeChat: Select the function of "Microfinance-Function Hall-Financial Tools and Information Inquiry-Loan Calculator" in the menu below, and enter the calculation conditions according to the page prompts for inquiry.
Bank of China Mobile Banking: Click the function of "Loan-Other Services-Loan Calculator" on the home page, and enter the calculation conditions according to the page prompts for inquiry.
The above contents are for your reference. Please refer to the actual business regulations.
This concludes the introduction of loan annualized interest calculator and loan annualized interest calculator formula. I wonder if you found the information you need from it?